All Forum Posts by: Lee Yoder

That's great @Nicholas Patrick! Which meet-up are you attending this Friday?

Hey @Nicholas Patrick welcome to Cincinnati! I think this is a great city to invest in. I would highly suggest you get involved in Joe Fairless's meet-up. You can find links to it here on BP. It's a great community and you'll find lots of guys doing exactly what you want to do. I invest in MF properties around Dayton. Good luck and God bless!

@Troy Gorospe Welcome to BP and welcome to real estate investing! One of the best meet-ups in Cincinnati is hosted by Joe Fairless who is one of the best apartment syndicators in the country. His meet-up is for anyone and is mostly made up of beginners. Lucky for you, the meet-up is virtual right now, so you can join! It's actually being hosted by Slocum Reed (great realtor and investor in Cincinnati) and he's interviewing other real estate investors in Cincinnati, so you'll get to know other people in this space that are living in Cincy. Good luck and God bless!

@Kevin Manz The electric furnaces and AC units are new, so I won't be upgrading anytime soon, but thanks for the advice!

Based on the NOI of the property, and the fact that a lot of the big-ticket items have been taken care of (roof, furnace/AC), I think we'll be able to get $700,000 for this property if we sell.

@Kevin Manz Yes, we pay All utilities. We even pay for cable. The entire building is heated with 4 electric furnaces in the basement.

I'm definitely still thinking about pulling money out and putting it into a larger property. I just feel like this is a great time to sell, so I'm having a hard time not wanting to sell at these really high prices. 

That's great that you're in the same situation. Congrats! Where is your 12 unit?

@Tyler Caglia I think there are several reason it sat on the market for so long:

1) Location. It's located about 10 miles outside of Dayton, OH. It's very rural- in a cornfield. Dayton isn't a great market, but this property is outside of a really good area of Dayton.

2) It's a weird property because it's an old school. The building is heated and cooled with one system, so you can't sub-meter and the heating/cooling costs are high.

3) The property was under contract twice, but fell through. I know the Buyers were asking for concessions/lower price, but I'm not sure how much. I'm guessing that the Sellers weren't desperate enough at that time to come down as much as they needed to. So, my timing was just right.

@Michael Barnhart The cafeteria is being rented out by a Church. They pay $60/week. They have really made this space their own and I couldn't be more happy with the outcome of this space. 

@Janel Y. I think nearly all of us fight analysis paralysis. What really got me over the hump was having a mentor to talk with. Having a property management company that knew the area and believed in the property and their ability to turn it around gave me a lot of confidence as well. So, I would really work hard to find these two partners. Also, keep this in mind: You can always walk away during the inspection period if you find a true reason to think it is a bad deal. So, just keep taking steps and when the numbers make sense, jump! 

Good question/point @Marcus Auerbach. This building is huge compared to what you'd expect for a 16 unit apartment. The square footage of the building is over 16,000. It's a flat, rubber roof. The roofing contractor that replaced 1/4 of the roof charged $45,000 just for the 1/4. They gave me the quote of $135,000 to put new rubber on the remaining 3/4. I ended up going with a Gaeco silicone roof which cost $90,000 (that included all new soffit and fascia). 

@Mikael Winkler My goal is to eventually buy and Hold 100+ unit apartment buildings built in the 1980's and more recent. That's not to say that I won't hold on to apartment buildings with less than 100 units. I try to go into every deal considering multiple exit strategies and make my decision based on how the property performs and what the market is doing.